According to a recent survey from UK property portal Rightmove, growth in property sale asking prices in the UK slowed to a 4-year low in January, with annual price growth falling from 3.2% to 2.3%. The monthly price growth was also low, at 2%, bringing the average asking price to £306,213.
Miles Shipside, Rightmove Director and Housing Market Analyst, believes inflation is a key factor behind this slowdown. Inflation currently sits at a two-year high of 1.8% and is expected to reach 3% in early 2018. Mr Shipside’s view is supported by RFi Group data, which has found that 1 in 2 consumers who would like to enter the property market in the next 12 months believe now is a bad time to buy a home because of the rising cost of living.
1 in 2 consumers who would like to enter the property market in the next 12 months believe now is a bad time to buy a home because of the rising cost of living.
Rightmove also pointed out that other factors would have influenced the low growth numbers, including the fact growth in 2016 was boosted by an increase in buy-to-let sales as investors scrambled to buy a property before new stamp duty rules were introduced.